- living trust
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A trust that is set up during a person's life. Living trusts are a common and excellent way to avoid probate at death, and may also reduce federal estate tax. Also called "inter vivos trust." (See also: revocable living trust, testamentary trust)Category: Wills, Trusts & Estates → Estate Tax
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
- living trust
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A property right, held by one party for the benefit of another, that becomes effective during the lifetime of the creator and is, therefore, in existence upon his or her death.
Dictionary from West's Encyclopedia of American Law. 2005.
- living trust
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I
A property right, held by one party for the benefit of another, that becomes effective during the lifetime of the creator and is, therefore, in existence upon his or her death.II A trust set up and in effect during the lifetime of the grantor. (Also called inter vivos trust.)
Short Dictionary of (mostly American) Legal Terms and Abbreviations.
- living trust
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n.sometimes called an inter vivos (Latin for "within one's life") trust, a trust created by a declaration of trust executed by the trustor or trustors (also called settlor or settlors) during his/her/their lifetime, as distinguished from a "testamentary trust," which is created by a will and only comes into force upon the death of the person who wrote the will. A living trust should not be confused with a "living will," which provides for medical care decisions when a person is terminally ill. While a living trust is a generic name for any trust which comes into existence during the lifetime of the person or persons creating the trust, most commonly it is a trust in which the trustor(s) or settlor(s) receive benefit(s) from the profits of the trust during their lifetimes, followed by a distribution upon the death of the last trustor (settlor) to die, or the trust continues on for the benefit of others (such as the next generation) with profits distributed to them. There are other types of living trusts including irrevocable trust, insurance trust, charitable remainder trust and some special- ized trusts to manage some parts of the assets of a person or persons.See also: beach bum trust provision, beneficiary, inter vivos, living will, settlor, spendthrift clause, trust, trustee, trustor
Law dictionary. EdwART. 2013.
